Bitcoin was authorized at the very first instance of 2009 by a Japanese group of Satoshi Nakamoto. So regardless of being in the game for a long time, 2021 is the utmost eventful year for bitcoin.
The crypto enthusiasts witnessed a sudden surge and slump in the price of digitalized coinage alongside its market capitalization and trading volume. However, the value of bitcoin started to incline at the very first glance of 2021 as tesla motors announced their recent investment in bitcoin.
Elon musk stated that tesla motors had converted some of their holdings in bitcoin, and the company is holding bitcoin worth $1.4 billion at the instance.
The value of bitcoin touched a milestone of $35000 in January 2021, and amid April, bitcoin touched its all-time high, and the value of bitcoin reached $65000 in a nominal range of time.
However, after the all-time high of bitcoin, this cryptographic cash was stuck on an average price for a very long time. On the 19th of May 2021, the cryptocurrency market crashed, and the value of bitcoin reached $30000 merely. After tumbling for ample weeks and being in the volatile territory, bitcoin rendered some recovery, and the price of bitcoin started to incline.
Almost after a time period of six weeks, bitcoin touched the milestone of $40,000, and the value of bitcoin is still inclining. Regardless of the cryptocurrency market crash, bitcoin has assisted several traders and investors in availing a gigantic buck.
Moreover, there is bitcoin mining that can help you in getting profitable results in your bitcoin expedition. Here are some of the crucial reasons for bitcoin's sudden surge after the recent dip, so without wasting any further ado, let's have a glance at the bigger picture.
1. Institutional involvement
Since bitcoin is decentralized and is not backed up by any higher authorities, the value of bitcoin is affected by renowned market players to an exceeding extent. Favor from big names is one of the prominent reasons why bitcoin has shown signs of recovery in recent times.
You might be familiar with the fact that Elon musk criticized bitcoin's environmental toll, and the price of bitcoin declined in an enormous amount after that explicit tweet.
All the more, Elon musk was correspondingly alleged for the cryptocurrency market crash.
According to some renowned market players, he was manipulating the value of bitcoin from his Twitter, and Elon received a threatening video from a hacking legion to which he replied in the most savage way possible.
Elon Musk recently tweeted about the energy consumption of bitcoin mining. As per the new flanged survey of bitcoin mining council led by micro strategy and few other gigantic firms, bitcoin mining is now complexed on 56% of sustainable energy source.
Addressing the fact, Elon Musk tweeted that bitcoin mining plants are now using greener energy, and the industry is expected to head in a similar direction.
All the more, he stated that tesla motors are likely to accept bitcoin as a payment method very soon. Elon Musk also stated that both of his foundations, tesla motors and space x foundation, held bitcoins.
2. Amazon Speculation
A fierce bulletin spread in the mainstream marketplace that Amazon has released a job call for the post o digital currency and blockchain product lead. This news spread like a forest fire in the industry and led to speculation that the utmost prominent e-commerce website might accept bitcoin as a payment method sooner or later.
Unfortunately, Amazon has denied the fact of bitcoin as a payment method, but it did skyrocket the value of bitcoin to an exceeding extent.
Apple is one of the most famous electronic gadget companies. Recently the leading public holder of bitcoin such as micro strategy and galaxy trading tweeted that it is rumored that Apple has invested almost $2.1 billion in bitcoin.
Undeniably there is no robust foundation for this rumor, but it correspondingly affected the value of bitcoin in an enormous amount.
As per the market analysts, in case apple has invested such an amount in bitcoin, Apple is now the second leading public holder of bitcoin as micro strategy is still the first.
All the more, if Apple agrees to the fact of investing such an amount in bitcoin, it will increase the market value of bitcoin by an enormous amount.
4. Speculation of Market Wrap!
Subsequent to the recent rally of bitcoin, several proficient analysts have speculated a market wrap as bitcoin is not expected to grow further.
Bitcoin was trading at a value of $46000 recently; all the more, the market cap of the entire cryptocurrency industry has touched the value of almost $2 trillion, the highest after the market crash.
According to these analysts, these are merely short-term gains. The current value of bitcoin is $45867, and the second-leading cryptocurrency ether is trading at a value of $3156.3.
These are some of the crucial reasons for the sudden bitcoin surge.